Believe it or not, various countries in Asia have emerged as leaders in cryptocurrency, and they're expected to grow more influential in the near future. Nations like the People's Republic of China, Japan, and the Republic of Korea, successfully adopt crypto will significantly influence global adoption.
3 of the top 5 companies running cryptocurrency exchanges are currently registered in Hong Kong, China, and Asia; and, they've seen about a 50% increase in blockchain and cryptocurrency jobs since 2017. In fact, Japan was rumored to have started Bitcoin; but those origins aren't for certain. Regardless, it's safe to say that some of the world's first mining operations were started in Japan.
So, how is Asia adopting cryptocurrency?
In this article, we'll look at Asia and crypto, in regards to:
- Their beginnings
- The participants that got Asia looking for crypto success
- The implications of this adoption, and
- The future that this adoption will bring
Crypto's rocky beginnings
Regardless of whether or not Bitcoin had started in Asia, the region still plays a considerable role in cryptocurrency markets today.
China is one influential crypto figure, despite its rocky history and currency. In the People's Republic of China, various factors have led to crypto's popularity, including:
- The government's stringent control of the yuan;
- The instability of the yuan;
- Private wealth growth (leading some to look for alternative currencies); and
- The republic's cheap energy and hardware (making mining more economical)
These factors have made the republic the world's leader in bitcoin mining, with 70% of its computing power located in the country. The republic holds more patents related to blockchain and cryptocurrency than any other country, with three times as many as the United States (the nation with the second most patents).
More participants in crypto to come
As a result of crypto becoming successful, Africa and India have become more participating in the crypto market, with Bitcoin being a godsend for African countries (including Nigeria), and the surge of crypto in India, a nationwide ban was lifted in May of 2020.
So, for both India and Africa, cryptocurrencies hold many opportunities for their people since many of the population is unbanked. The costs of participating in the local financial system are higher than that of using cryptocurrency solutions.
As a result, Asia has grown from an interest to a need for crypto to get the same results as Africa and India. Thus, those two nations were the catalysts to how Asia grew to become a powerful crypto titan.
Implications of crypto in Asia
Cryptocurrencies are also helping Asian investors to invest more in markets worldwide in the following ways:
- In 2017, Asian investors directed 40% of global venture financing than American investors' 44%, partially thanks to cryptocurrency.
- Digital currencies are beneficial for international trading because they're not based on a specific country's specific currency – basically ethnic-less, so to speak.
As a result, some of the world's most innovative and accepting countries in regard to cryptocurrencies come from Asia; and how countries like Africa and India are now addressing crypto will have a significant influence on how Asia grows its crypto wealth, and how the rest of the world will do the same.
If governments in Asia were crackdown on crypto, they might push other nations to take on a leadership role. If they become more involved in searching for more success in crypto, other countries will likely do the same.
The future of crypto in Asia
It's estimated that by mid-2021, most sizable markets will have a legal framework in place for cryptocurrencies (transmission and storage), especially in Asia. While there are still issues that need to be resolved – including regulation expecting crypto exchanges to adhere to travel rules and other compliances – Asian exchanges will still create more innovative product ideas as cryptocurrency regulations become more transparent. Eventually, digital assets will become a part of people's lives.
Conclusion
Nevertheless, we are seeing more and more national governments – including that of Asia – grow more interested and active in fitting cryptocurrency into their legislations. And, signs point to an even more accepting view of crypto in the future, especially in Asia. As crypto becomes more legalized, Asia will continue to be a powerhouse of this new currency form for many years to come.
